Kenyan solar energy firm signs 40 MW power deal with State-run utility

31st May 2018

By: Reuters

  

Font size: - +

A private Kenyan power firm has signed a 20-year deal to sell 40 MW it will generate from a solar plant it is building to the East African nation's State-run distributor, its chief executive said.

Kenergy Renewables signed the agreement to sell the electricity to Kenya Power at $0.08/kWh, Khilna Dodhia said in an interview on Thursday.

The company requires a letter of support from the government which will provide clarity on when the plant will become operational, she told Reuters.

"Once you secure a PPA (power purchase agreement) that's a sign you are on your way. But lenders require a letter of support from government to green light funding," she said.

Dodhia did not say what the total cost of the project would be, but said they typically cost $60-million to $70-million.

Kenergy has already invested more than $2-million in the early stages of development for the Rumuruti project in Laikipia County in northern Kenya, Dodhia said.

Kenya has an installed generating capacity of 2 370 MW and peak demand of about 1 770 MW. It relies heavily on renewables such as geothermal and hydro power.

Edited by Reuters

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION